Use the Following Information for the Next 2 Questions

question 126

Multiple Choice

Use the following information for the next 2 questions.
Division A produces a component for Hielkema Company's main product - automobiles. The division operates as a profit center. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A:
-The minimum price at which A would sell components internally is

• A) $71
• B) $73
• C) $75
• D) $65

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Definitions:

Standard Deviation

Standard deviation is a measure of the dispersion or variation in a set of values, indicating how much the values deviate from the mean.

Sample Size

The number of observations or replicates included in a statistical sample, significant in determining the precision of an estimate or test.

Unbiased Estimator

A statistical estimator whose expected value is equal to the parameter being estimated, ensuring accuracy across an infinite number of samples.

Population Proportion

It is a measure that gives the fraction of individuals in the population having a particular attribute.